Volume 12, Chapter 3 - Department of Defense Standards of ...

[Pages:14]DoD Financial Management Regulation

Volume 12, Chapter 3 ? December 2008

SUMMARY OF MAJOR CHANGES TO DOD 7000.14-R, VOLUME 12, CHAPTER 3 "CONTRIBUTIONS FOR DEFENSE PROGRAMS, PROJECTS, AND ACTIVITIES"

All changes are denoted by blue font

Substantive revisions are denoted by a ? preceding the section, Paragraph, table or figure that includes the revision

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PARA 030303

All 030203

EXPLANATION OF CHANGE/REVISION Adds ethics language. DFAS-DE changed to DFAS-IN throughout. Adds language specifying that contributions received are for the use of the accepting organization

PURPOSE Update Update

Clarification

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DoD Financial Management Regulation ?TABLE OF CONTENTS

Volume 12, Chapter 3 ? December 2008

CONTRIBUTIONS FOR DEFENSE PROGRAMS, PROJECTS, AND ACTIVITIES

0301

Introduction

0302

Authority

0303

Policy on Contributions

0304

Accounting for Contributions

0305

Reporting on Contributions

0306

Investing Contributions

Figure 3-1 Sample Format Wire Transfers to the U.S. Treasury

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DoD Financial Management Regulation ?CHAPTER 3?

Volume 12, Chapter 3 ? December 2008

CONTRIBUTIONS FOR DEFENSE PROGRAMS, PROJECTS, AND ACTIVITIES

0301 INTRODUCTION

030101.

Purpose. This Chapter prescribes the overall policy and assigns

responsibilities for the acceptance, receipt, use, and reporting of money, real or personal property,

or services to the Department of Defense (DoD) under Title 10, United States Code, section 2608.

030102.

Defense Cooperation Account. A special account is established in the

Treasury of the United States for receipt of monetary contributions and proceeds from the sale of

real or personal property contributions accepted by the Secretary of Defense, or designee under

Title 10, United States Code, section 2608.

0302 AUTHORITY

030201.

Secretary of Defense. Title 10, United States Code, section 2608 provides

authority for the Secretary of Defense (SECDEF) to accept, for use by the Department, from any

business (or person), foreign government, or international organization, any contribution of money

or real or personal property and may accept from any foreign government or international

organization any contribution of services.

030202.

Under Secretary of Defense (Comptroller) (USD(C)). Authority to accept

such contributions has been delegated to the USD(C), who also serves as the single point of contact

in the Department for the Departments of State and the Treasury with respect to all matters

involving the receipt, administration and distribution of contributions of funds from foreign

countries for defense programs.

? 030203.

Military Departments and Defense Agencies. The Secretaries of the

Military Departments and the Directors of the Defense Agencies, have authority to accept from any

business (person), or international organization, any contribution of real or personal property for

use by their organizations.

030204 .

Washington Headquarters Services. Given Washington Headquarter

Services' responsibility for the management of property and physical assets at the Pentagon and to

maintain consistency in property accountability the Director of the Washington Headquarter

Services has authority to accept contributions of personal property offered to the Office of the

Secretary of Defense for use at the Pentagon.

030205 .

Delegation of Authority. The USD(C) may provide additional delegations

of authority to accept contributions of real and personal property or services on a case by case

basis.

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DoD Financial Management Regulation 0303 POLICY ON CONTRIBUTIONS

Volume 12, Chapter 3 ? December 2008

030301.

Nonmonetary Contributions. These are contributions in the form of real

property (fixed assets such as land, buildings, other structures, and facilities), tangible property

(inventory or items held for sale, operating materials, supplies, and equipment) or services that

would benefit the DoD if accepted. Once the DoD accepts these contributions, the intent of the

accounting standards (Statements of Federal Financial Accounting Standards (SFFAS)) is that the

benefiting DoD organization should recognize the contribution in its financial statements. See

Volume 4, chapters 4 and 6, and Volume 6B, of this Regulation, for accounting and reporting

guidance.

A. The receiving DoD organization recognizes a change in inventory, stock, or plant, property, and equipment (PP&E) related records once transfer of the goods or services is made thus making DoD the legal owner of said goods or services. An organization receiving donated general PP&E determines its fair value at the time it was acquired by the government. Donations of assets or services must be reported quarterly to the Defense Finance and Accounting Service (DFAS), Indianapolis, 8899 East 56th Street ATTN: Trust Fund Accounting Division, Column 203L, Indianapolis, Indiana 46249-1500 (see paragraph 030501).

B. The receiving organization must document and retain on file the details of each nonmonetary contribution received. For audit purposes, the supporting documentation must be retained for the life of the asset, but no less than 6 years and 3 months. Each file must include:

1. A description of the contribution.

2. The estimated value of the contribution, including the valuation method used (see subparagraph 030301.C, below).

3. The name and address of the donor(s).

donor.

4. A list of restrictions, conditions, or other information set out by the

5. The acquisition date.

6. The useful expected life of the donation.

7. A statement explaining the benefits of accepting the donation. You must explain why accepting the donation is preferred to obtaining the item or service through existing DoD supply channels.

8. A unique identifier or data element used to track the same or similar items shipped from different sources.

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DoD Financial Management Regulation

Volume 12, Chapter 3 ? December 2008

9. The Service and appropriation that benefit from this contribution. Identify the appropriation that normally furnishes this asset.

030302.

Monetary Contributions. The USD(C) retains the authority to accept all

monetary contributions. Monetary contributions are not generally accepted with restrictions, i.e.,

with designations for specific programs or purposes.

A. Contributions in Cash

1. Cash contributions, including proceeds from the sale of any contributed property, shall be deposited to the Defense Cooperation Account (DCA) as soon as practical, but not later than the last day of the month.

2. Consistent with sound cash management practices, any cash accepted, under USD(C) authority, shall be either converted into a check and forwarded to the DFAS using overnight delivery service, or deposited into a Treasury General Account with funds transferred to the DCA via electronic funds transfer--whichever process results in the earliest deposit of funds into the DCA.

3. Any funds forwarded by electronic funds transfer shall be deposited within 24 hours into the DCA under ALC 9720010 and Account Number 97X5187.1. Additionally, the DFAS Trust Fund Accounting Division shall be notified prior to forwarding any funds electronically.

4. Documentation associated with cash contributions, including copies of deposit tickets, and the original of correspondence from contributors shall be forwarded within 24 hours of the deposit using overnight delivery service, to the DFAS Trust Fund Accounting Division.

B. Contributions by Check

1. Checks received by DoD officials shall be made payable to the "United States Treasury." The reference line on the check should indicate the "Defense Cooperation Account."

2. Checks received by DoD officials shall be forwarded to the DFAS Trust Fund Accounting Division. The DFAS shall deposit such funds within 24 hours of receipt into the DCA under ALC 9720010 and Account Number 97X5187.1.

3. Documentation associated with check contributions, including the original of any correspondence from contributors shall be forwarded with the check.

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DoD Financial Management Regulation C. Contributions by Wire Transfer

Volume 12, Chapter 3 ? December 2008

1. Contributions by wire transfer eliminate delays in receiving deposits and provide the most efficient preliminary accounting information for investment purposes.

2. After approval by the USD(C), donors may make contributions to the DCA via electronic funds transfer from commercial banks to "Account Number 1" in the Federal Reserve Bank of New York (as Fiscal Agent of the United States). The Federal Reserve Bank of New York shall credit the Department accordingly, using the format in Figure 3-1.

3. Documentation associated with wire transfer contributions, including the original of any correspondence from contributors shall be forwarded within 24 hours of the deposit using overnight delivery service, to the DFAS Trust Fund Accounting Division.

D. Contributions in Foreign Currencies (Cash or Check). Upon notice of a planned large contribution ($1 million or more) to be made in foreign currency the cognizant DoD official shall:

1. Request the donor provide as much lead time as possible regarding the amount of the contribution and the estimated date the contribution will be made.

2. Advise the USD(C) and the DFAS Trust Fund Accounting Division of any planned contributions and continue to keep that office advised of the status until the currency transfer is made by the donor.

3. Upon approval by the USD(C), request the donor credit the foreign currency contribution to the Federal Reserve Bank of New York "Account Number 1" via the donor's central bank. If the Federal Reserve Bank does not maintain an account with a particular donor, the DoD official should seek guidance from the DFAS Trust Fund Accounting Division, for appropriate alternative arrangements.

4. Foreign checks received by DoD officials shall be converted to a check denominated in U.S. dollars prior to being forwarded to the DFAS or transferred electronically into the DCA.

5. Cash and checks received by DoD officials in countries not served by a DoD disbursing officer shall, upon approval by the USD(C), be delivered to the nearest U.S. Embassy within 24 hours of receipt for deposit in the DCA, under ALC 97200010 and Account Number 97X5187.1.

? 030303.

Policy On Acceptance Of Contributions.

A. Authorities that may accept contributions shall use sensitivity and scrutiny when contributions are offered from prohibited sources and, if there is a question on propriety, shall consult with their Ethics Counselor to determine whether accepting a contribution would violate any prohibition, or reflect unfavorably on the Department. "Prohibited source" and

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DoD Financial Management Regulation

Volume 12, Chapter 3 ? December 2008

"Ethics Counselor" shall have the meanings set forth in DoD 5500.7-R, the Joint Ethics Regulation.

B. Authorities that may accept contributions may pay all necessary expenses in connection with the conveyance or transfer of a contribution. Contributions should not be accepted if it would result in substantial expenditures or administrative efforts and maintenance that are disproportionate to any benefit.

C. Department personnel shall not solicit, fundraise for, or otherwise request or encourage the offer of a contribution.

D. Authorities that may accept contributions may acknowledge offers of future contributions and advise the donors that acceptance will occur after actual presentation of the contributions only when they determine that such acceptance will likely occur.

0304 ACCOUNTING FOR CONTRIBUTIONS

030401.

Cash entries. Entries for the receipt and distribution of cash contributions

or donations to the DCA are shown below.

A. Cash contributions received.

1. Budgetary entry.

Debit 4114

Appropriated Trust or Special Fund Receipts

Credit 4620 Unobligated Funds Exempt From Apportionment

2. Proprietary entry.

Debit 1010

Fund Balance with Treasury

Credit 5600 Donated Revenue-Financial Resources

B. Budgetary entry at year-end.

Debit 4201

Total Actual Resources-Collected

Credit 4114 Appropriated Trust or Special Fund Receipts

C. Cash allocated to a program

1. Budgetary entry.

Debit 4620

Unobligated Funds Exempt From Apportionment

Credit 4129 Amounts Appropriated from Specific Invested

TAFS-Transfers-Out

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DoD Financial Management Regulation 2. Proprietary entry.

Volume 12, Chapter 3 ? December 2008

Debit 5765

Nonexpenditure Financing Sources?Transfers-Out

Credit 1010

Fund Balance with Treasury

030402.

Nonmonetary entries for assets or services. The entries below are made

after accepting goods and PP&E or services:

A. Contributed assets.

1. No budgetary entry.

2. Proprietary entry.

Debit 1511 Operating Materials and Supplies Held for Use Debit 1525 Inventory ? Raw Materials Debit 1527 Inventory ? Finished Goods Debit 1572 Stockpile Materials Held for Sale Debit 1591 Other Related Property Debit 1711 Land and Land Rights Debit 1730 Buildings, Improvements and Renovations Debit 1740 Other Structures and Facilities Debit 1750 Equipment Debit 1820 Leasehold Improvements Debit 1830 Internal Use Software Debit 1840 Other Natural Resources Debit 1890 Other General Property, Plant and Equipment

Credit 5610 Donated Revenue ? Nonfinancial Resources

B. Contributed services.

1. No budgetary entry.

2. Proprietary entry.

Debit 6100 Operating Expenses/Program Costs Credit 5610 Donated Revenue ? Nonfinancial Resources

0305

REPORTING ON CONTRIBUTIONS

030501.

Not later than 10 days after the end of each quarter, each DoD official that

has accepted and received a nonmonetary contribution shall submit a report to the DFAS Trust

Fund Accounting Division that identifies the following:

A. Nonmonetary Contributions Received

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